Good customer service is essential because those employees are in the front lines of promoting a business. Owners often spend considerable time and money establishing excellent customer service departments and procedures, so they want to ensure everything functions at peak efficiency. Implementing cost-saving ideas will increase the odds of receiving a solid return on investment.

Outsourcing

Outsourcing is a common customer service cost-savings tool, paying outside firms to handle certain functions. While larger companies may outsource customer service functions to foreign countries, small businesses may outsource it domestically. This can spare small businesses the expense of acquiring new facilities and establishing telephone communication infrastructure. Small businesses can also outsource aspects of payroll and personnel, again saving considerable time and expense.

Automation and Internet

Automating the telephone system for certain customer service functions means hiring fewer employees, thus saving on payroll and training. Using Internet-based technology can consolidate functions into one centralized customer service center. The business can then opt to locate that center in the most favorable business environment based upon such factors as the average employee wage for that area, plus the local tax rate and more.

Develop Websites

Establishing interactive websites is a proactive customer service approach for both small and large businesses. Instead of waiting for consumers to visit with questions, companies anticipate the questions and answer them via websites. It also means savings, because website hosting fees are often lower than staffing a customer service department.

Establish Multitasking

Cross-training employees is another customer service cost-saver. Instead of hiring one employee per business function, each employee can instead handle several functions. For example, perhaps the secretary can double as the bookkeeper, among other duties, while other employees double up in other capacities. Obviously, this will save payroll, besides helping keep the business running smoothly when encountering unexpected absences.